What is the maximum fee for returned checks?

Study for the Tax Collection Exam with flashcards and multiple choice questions, each with hints and explanations. Get ready for your exam!

Multiple Choice

What is the maximum fee for returned checks?

Explanation:
Returned-check fees are capped by statute to cover the extra costs when a payment is dishonored. In this scenario, the legal limit is twenty dollars, so the maximum you may charge is twenty. Charging more than twenty would exceed the allowed limit, while twenty dollars is the largest amount that stays within the cap. Fifteen dollars is below the maximum, and twenty-five or thirty dollars would violate the rule.

Returned-check fees are capped by statute to cover the extra costs when a payment is dishonored. In this scenario, the legal limit is twenty dollars, so the maximum you may charge is twenty. Charging more than twenty would exceed the allowed limit, while twenty dollars is the largest amount that stays within the cap. Fifteen dollars is below the maximum, and twenty-five or thirty dollars would violate the rule.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy